Washington, D.C.-The Fertilizer Institute announced on Sept. 13 that it is awarding its performance-based nutrient use grant program to the Illinois Fertilizer and Chemical Association (IFCA), the Penn Ag Industries Association (Penn Ag), and the Virginia Agribusiness Council (VAC) to help fund initiatives aimed at promoting the science behind nutrient use. TFI’s state nutrient issues grant initiative was unveiled in March, and the Delaware Maryland Agribusiness Association (DMAA) was the first state association to receive a grant under the program. “TFI is pleased to recognize the efforts of our affiliated state and regional associations who have a wide variety of consumer and farmer-aimed nutrient use programs in the planning stages,” said TFI President Ford B. West. “With these grants, Illinois, Pennsylvania and Virginia will be able to get their programs off the ground.” IFCA is planning a “Best Management Practices Education Campaign for Indian Creek Watershed” in Lawrenceville, Ill., focusing on nutrient best management practices and nutrient management plan record-keeping. The grant funds will be used to develop two brochures as part of this campaign. Penn Ag will use its funds to educate small acreage producers/gardeners/homeowners about best management practices, including the importance of soil testing and working with local fertilizer dealers. The grant will enable Penn Ag to develop a brochure on the different fertilizer options homeowners have for residential use. VAC will focus its grant funding on making improvements to the Virginia Nutrient Management Program, including a survey of the industry’s use of best management practices and initiatives to prepare the industry for future nutrient management and environmental stewardship programs. As the projects progress, each recipient will submit progress reports. TFI said grant applications will continue to be reviewed as they are received, and encouraged state and regional associations to apply. A document containing grant criteria and additional information is available from TFI Director of Government Relations Bob Tadsen via e-mail atrtadsen@tfi.org or via telephone at 202-515-2725.
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Coalition urges regulation of energy markets
Washington, D.C.-The Energy Market Oversight Coalition (EMOC), whose members include the Agricultural Retailers Association and roughly 70 other business and trade associations, sent a letter on Sept. 4 to every U.S. Senator and Representative urging their support for greater transparency and accountability in the over-the-counter (OTC) energy commodity markets. The letter states that “excessive speculation and alleged manipulation in such markets have held American consumers and small businesses – and the economy at-large – hostage to unprecedented price volatility and uncertainty for far too long.” As one example, the letter cites a Senate Permanent Subcommittee on Investigations report, released on June 25 and entitled Excessive Speculation in the Natural Gas Market, which highlights price manipulation carried out by Amaranth Advisors LLC in 2006. The report, the letter states, concluded that price distortions in the natural gas market resulting from Amaranth’s “excessive speculation” was evidence of “a broken regulatory system that has left our energy markets vulnerable to any trader with sufficient resources to alter energy prices for all market participants.” Although enforcement actions and nearly a half-billion dollars in fines were levied against Amaranth by the Federal Energy Regulatory Commission, the EMOC letter says more should be done, including strengthening the Commodity Futures Trading Commission and giving it the statutory and financial resources needed to carry out “much needed oversight of the unregulated OTC markets.” Specifically, the letter urges Congress to fully fund the CFTC with $116 million in fiscal year 2008; close a loophole that allows unregulated trading on energy exchanges; give the CFTC “regulatory authority over all electronic trading mechanisms, and subject them to the same regulatory mandates as designated contract markets, such as the New York Mercantile Exchange;” include small business and consumer representation on all CFTC advisory committees; carefully review future nominations to the CFTC; and “hold energy market players and regulators accountable, and encourage rigorous enforcement and oversight of all commodity markets.” The CFTC has scheduled a Sept. 18 hearing in Washington, D.C., to examine oversight of trading on regulated futures exchanges and exempt commercial markets.
K+S, partner, eye $2 B greenfield potash project
Kassel, Germany-Potash producer K+S AG and an unidentified partner may spend US$2 billion on a new greenfield potash mine, according to a recent report by Bloomberg, which interviewed K+S CEO Norbert Steiner. K+S would reportedly contribute $1 billion to the 50-50 venture, which would have an annual capacity of 2 million mt. Steiner was quoted as saying that talks were well-advanced and that he hoped to have more details in the foreseeable future. He added that he believes potash would likely rise in price to $300/mt by the end of the year, up from $180-$190/st at the start of the year. K+S had not returned inquiries at presstime.
Linea acquires stake in K+S Aktiengesellschaft
Kassel, Germany-Linea Ltd., Hamilton, Bermuda, has acquired 6.75 percent of the shares in K+S Aktiengesellschaft as of Sept. 10, 2007. Linea, manages, among other things, the company’s engagement in the EuroChem Mineral and Chemical Co., Moscow. Linea is identified as the investment vehicle of Andrei Melnichenko, the Russian billionaire who owns the bulk of EuroChem. The purchase was reported to have boosted K+S stock prices and spurred speculation of a takeover attempt or joint venture between K+S and EuroChem in a new $2 billion potash mine (See related brief).
Nitrate-related explosion kills dozens
Nadadores, Mexico-Dozens were dead near Nadadores in the northeastern Mexican state of Coahuila on Monday, Sept. 10, according to various wire reports. The number of the dead, initially given as 28, was growing, as some of the approximately 150 injured were seriously injured. A tractor-trailer reportedly carrying 25 metric tons of either ammonium nitrate or ANFO (an ammonium nitrate and fuel oil mixture) was involved in an accident with another vehicle. Reports were that the explosion came about an hour and a half after the actual accident, when a fire broke out. Unfortunately, the area had not been evacuated. Local reports identified the truck as coming from Orica Ltd.’s plant in Monclova, enroute to a mine in Colima. Orica had not returned calls at presstime.
Yara increases Kemira GrowHow stake
Oslo-Yara International is extending its takeover offer for Finland’s Kemira GrowHow Oyj until Sept. 27, with no change in terms. Yara commenced a mandatory offer for Kemira June 21, to run through Sept. 7. It had already attained 30 percent; Yara now says it owns 93.89 percent of Kemira. The deal is still subject to approval by the European Commission. A decision is expected later this month.
Viterra releases earnings
Regina, Sask.-Viterra reported net earnings of C$96.0 million on sales of $1.4 billion for the fourth quarter ending July 31, 2007, up from the year-ago $13.5 million and $601.1 million. For the year ending July 31, net earnings were $108 million on sales of $2.6 billion, versus the year-ago $531,000 and $1.6 billion, respectively. Viterra is the new operating name for the Saskatchewan Wheat Pool Inc. and Agricore United, (AU). Results for AU are only included for the two months since the acquisition date of May 29, 2007, and are not included in year-ago amounts. Viterra has announced plans to change its financial year-end to Oct. 31. As a result, 15-month results will be released after that date. Sales and other revenues from Viterra’s Agri-Product segment were $588.3 million for the fourth quarter, up from the year-ago $340.0 million. Segment gross profit and net revenues from services rose to $142.9 million, up from $48.0 million, with much of this attributable to improved fertilizer margins. EBIT was up, at $95.9 million from the year-ago $28.2 million. Full-year sales results were $810.6 million, up from $539 million. Gross profit was $183.2 million, up from $77.1 million. EBIT was $93.4 million, up from $14.7 million. Crop protection sales led the way in the fourth quarter, but fertilizer led for the year.
| Category | 4Q-07 | 4Q-06 | YR-07 | YR-06 |
| Fertilizer | 224.2 | 185.7 | 381.6 | 336.3 |
| Crop Prot. | 304.1 | 116.4 | 326.6 | 133.7 |
| Seeds | 34.7 | 30.9 | 64.6 | 49.3 |
| Equip. | 25.3 | 7.0 | 37.8 | 19.7 |
Enviros call for efforts to reduce fertilizer runoff
Washington-It’s high time for Congress to require more environmental protection from soil erosion and fertilizer and pesticide runoff in exchange for costly farm subsidies, according to a report from the Environmental Working Group. As nearly 75 percent of farmer requests for voluntary conservation assistance go unfunded and soil erosion rules for subsidy recipients are barely enforced, EWG charges, 1.7 billion tons of topsoil erodes off agricultural fields nationwide, polluting America’s waters and fisheries with sediment and millions of pounds of fertilizer and pesticides. While USDA estimates soil erosion is down 40 percent since 1985, due partly to conservation compliance, the report Trouble Downstream: Upgrading Conservation Compliance singles out a number of factors – including poor enforcement and woefully inadequate conservation compliance – that must be updated to solve the nation’s water quality problems. EWG attributes the massive and chronic water pollution “Dead Zone” problem in the Gulf of Mexico to lavish subsidies for large farmers, combined with slack compliance enforcement and significant under-funding of voluntary cost-share conservation programs. Even more disturbing, EWG charges, taxpayer dollars in the form of federal farm subsidies to commodity crop producers that are heavy users of fertilizer are contributing to this environmental catastrophe. The problem could worsen with the rapidly expanding production of corn and other crops as a result of the biofuels boom. Furthermore, conservation compliance singularly focuses on soil erosion, while much of today’s agricultural-environmental challenges involve fertilizer pollution, which is not managed by conservation compliance. “It makes sense to expect that taxpayer dollars spent supporting crop production does not result in soil erosion or fertilizer pollution of our nation’s waters. It’s high time for Congress to require more environmental protection in exchange for farm subsidies, especially now, when budgets are tight, and there isn’t enough money to solve problems with the conventional voluntary cost-share approach,” says Michelle Perez, senior analyst and primary author of the EWG report. Responding on behalf of the industry, TFI cited its strong advocacy of farmers having a written nutrient management plan that takes into account both fertilizer use and the nutrient content of any animal manure used. “There is a national network of Certified Crop Advisers (https://www.agronomy.org/cca/) available to help farmers in these efforts, and we encourage the use of these trained individuals for this purpose,” reported spokeswoman Kathy Mathers.
Florida fertilizer rule won’t preempt local law
Tallahassee-The Urban Turf Fertilizer Rule adopted last month to reduce the amount of nitrogen and phosphorus used on turfgrass will not preempt local ordinances, according to state agriculture and consumer service officials. The rule, designed to reduce fertilizer runoff into the state’s waterways, has the support of environmental and water conservation interests. Counties, some of which already have their own fertilizer restrictions, won’t be legally prohibited from regulating what’s in the fertilizer bag, which is what the statewide rule establishes, Agriculture and Consumer Services spokesman Terry McElroy told Green Markets. “But local law that deviates from the statewide rule will be very difficult to enforce,” McElroy added, “and it will be virtually impossible to find a commercial fertilizer product in the marketplace that would comply with a more restrictive rule than the one adopted by the state.” McElroy said the state hopes – and believes – that local governments that enact such laws in the future will focus on non-formulation issues, including mandatory training for commercial lawn maintenance personnel and regulations establishing how close to water bodies fertilizer can be applied. Meanwhile, The Fertilizer Institute is warning that Florida’s rule calling for reductions in nitrogen between 20 and 25 percent and phosphorus by 15 percent is too low. TFI spokeswoman Kathy Mathers commented, “We believe that the nitrogen recommendations in particular are too low to sustain healthy turf and think that the potentially beneficial role for enhanced efficiency fertilizer products was not taken into consideration in the final rule.”
First ammonia-fueled pump shipped for testing
Algona, Iowa-Hydrogen Engine Center Inc. has completed and shipped its first anhydrous ammonia-powered irrigation pump for field testing in California, where the state is requiring that such machinery be converted to non-polluting fuels by 2010, according to HEC officials. The engine will be operated primarily on anhydrous, using liquefied petroleum gas as a catalyst fuel to irrigate a walnut grove and provide water for a cattle ranch in the San Luis Obispo area. “We are pleased that, in a relatively short period of time, we have developed the technology to a point where we are ready to begin full field trials,” CEO Ted Hollinger he said. “We believe that implementing ammonia as a carbonless fuel with our Oxx Power products will open new markets that have been dominated by fossil fuel powered engines for decades.”